As we approach 2025, it’s important to review the updated deductible amounts for Medicare Supplement Insurance (Medigap) plans. These changes, effective January 1, 2025, are particularly relevant for those enrolled in or considering Medigap coverage. Here’s a breakdown of the new deductible amounts and what they mean for you.

Part B Deductible

Most Medigap plans do not cover the Part B deductible (except Plans C and F).

• 2024 Part B Deductible: $240
• 2025 Part B Deductible: $257

Some Medigap plans also offer high-deductible versions, and those amounts are increasing as well.

What Are High-Deductible Medigap Plans?

High-deductible Medigap plans are a type of Medicare Supplement Insurance that offers lower monthly premiums in exchange for a higher annual deductible.

Benefits of High-Deductible Medigap Plans

1. Lower Monthly Premiums: These plans are ideal for individuals who want to reduce their monthly insurance costs.
2. Comprehensive Coverage After Deductible: Once you meet the deductible, these plans provide the same benefits as standard Medigap plans, such as coverage for Part A and Part B coinsurance, skilled nursing facility coinsurance, and more.
3. Good for Healthy Beneficiaries: If you rarely use healthcare services, a high-deductible plan can save you money over time.
4. Predictable Maximum Costs: Your annual costs are capped at the deductible, offering financial predictability during a medical event.

This option is particularly suited to those who prefer lower fixed costs (premiums) and can budget for a higher deductible if needed.

Which Medigap Plans Offer a High-Deductible Option?

• Plan F: Available only to individuals eligible for Medicare before January 1, 2020.
• Plan G: Available to individuals who became eligible for Medicare on or after January 1, 2020.
• Plan J: Discontinued in 2010, but some beneficiaries who enrolled prior to its removal still maintain it.

For these plans, the deductible represents the annual out-of-pocket expenses (excluding premiums) a beneficiary must pay before coverage begins.

2024 vs. 2025 Deductibles

The Centers for Medicare & Medicaid Services (CMS) adjusts these deductible amounts annually based on inflation data from the Consumer Price Index for All Urban Consumers (CPI-U).

• 2024 High Deductible Amount: $2,800
• 2025 High Deductible Amount: $2,870

This reflects a $70 increase for 2025.

What This Means for You

If you’re enrolled in a high-deductible version of Plans F, G, or J:

• You’ll need to pay $2,870 in out-of-pocket costs before your plan starts covering medical expenses in 2025.

Why the Increase?

Each year, CMS adjusts deductibles based on economic trends, specifically the CPI-U. This ensures that deductibles keep pace with the cost of living and healthcare expenses.

Planning for 2025

If you’re currently enrolled in or considering a high-deductible Medigap plan:

• Review your 2025 budget to account for the higher deductible.
• Keep in mind that while these plans offer lower premiums, you’ll need to meet the deductible before benefits apply.

Need Help?

Navigating Medigap options and keeping up with annual changes can be overwhelming. If you have questions about your plan or want to compare options, our licensed Medicare advisors at AMAC are here to help. Reach out today to ensure you’re prepared for 2025 – 855-611-4856.